The Asian Financial Crisis: Origins, Implications, and Solutions

1. Front Matter

   Pages i-xiv

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2. Opening Remarks

   1. Front Matter

      Pages 1-1

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   2. The IMF and the Asian Crisis: A View from the Executive Board

      • Karin Lissakers

      Pages 3-10

   3. The Asian Financial Crisis

      • Michael H. Moskow

      Pages 11-14

3. Origins of the Asian Crisis

   1. Front Matter

      Pages 15-15

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   2. What Caused the Recent Asian Currency Crises?

      • Craig Burnside, Martin Eichenbaum, Sergio Rebelo

      Pages 17-26

   3. Origins of the Crisis in Asia

      • Michael P. Dooley

      Pages 27-31

   4. Thoughts on the Origins of the Asian Crisis: Impulses and Propagation Mechanisms

      • Reuven Glick

      Pages 33-63

   5. Origins of the Asian Crisis: Discussion

      • Roberto Chang

      Pages 65-71

4. Causes and Implications of the Asian Crisis—The Role of the Financial Sector, Domestic Policies, and Contagion

   1. Front Matter

      Pages 73-73

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   2. Precarious Credit Equilibria: Reflections on the Asian Financial Crisis

      • Joseph R. Bisignano

      Pages 75-113

   3. Causes and Implications of the Asian Crisis: An Indonesian View

      • J. Soedradjad Djiwandono

      Pages 115-126

   4. The Korean Banking Crisis: Picking up the Pieces

      • William C. Hunter

      Pages 127-133

   5. Asian Currency Crisis

      • Desmond Lachman

      Pages 135-138

   6. Causes and Implications of the Asian Crisis

      • Flemming Larsen

      Pages 139-143

   7. The Yen and Boom—Bust Cycle in East Asia

      • Kazuo Ueda

      Pages 145-148

   8. Causes and Implications of the Asian Crisis: The Role of Financial Sector, Domestic Policies and Contagion

      • Chaiyawat Wibulswasdi

      Pages 149-154

5. Response to the Crisis—Overview and Case Studies

   1. Front Matter

      Pages 155-155

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   2. Asian Crisis: Causes and Remedies

      • Bijan B. Aghevli

      Pages 157-166

   3. Korea’s Financial Sector Reforms

      • Stijn Claessens, Swati Ghosh, David Scott

      Pages 167-192

In the late 1990s, Korea, Thailand, Indonesia and Malaysia experienced a series of major financial crises evinced by widespread bank insolvencies and currency depreciations, as well as sharp declines in gross domestic production. This sudden disruption of the Asian economic `miracle' astounded many observers around the world, raised questions about the stability of the international financial system and caused widespread fear that this financial crisis would spread to other countries. What has been called the Asian crisis followed a prolonged slump in Japan dating from the early 1980s and came after the Mexican currency crisis in the mid-1990s. Thus, the Asian crisis became a major policy concern at the International Monetary Fund as well as among developed countries whose cooperation in dealing with such financial crises is necessary to maintain the stability and efficiency of global financial markets.
This book collects the papers and discussions delivered at an October 1998 Conference co-sponsored by the Federal Reserve Bank of Chicago and the International Monetary Fund to examine the causes, implications and possible solutions to the crises. The conference participants included a broad range of academic, industry, and regulatory experts representing more than thirty countries. Topics discussed included the origin of the individual crises; early warning indicators; the role played by the global financial sector in this crisis; how, given an international safety net, potential risks of moral hazard might contribute to further crises; the lessons for the international financial system to be drawn from the Asian crisis; and what the role of the International Monetary Fund might be in future rescue operations.
Because the discussions of these topics include a wide diversity of critical views and opinions, the book offers a particularly rich presentation of current and evolving thinking on the causes and preventions of international banking and monetary crises. The book promises to be one of the timeliest as well as one of the most complete treatments of the Asian financial crisis and its implications for future policymaking.

• East Asia
• Financial Market
• Financial Markets
• Nation
• production
• productivity

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